What is COPAS overhead?
What is COPAS overhead?
COPAS Annual Overhead Adjustment Factors COPAS model form accounting procedures provide for an annual adjustment of the fixed rate overhead for drilling and producing wells using an index published by the Department of Labor, Bureau of Labor Statistics. The BLS ceased publishing this particular index in 2003.
What is a COPAS rate?
COPAS, the Council of Petroleum Accountants Societies, Inc., computes the percentage wage Index Adjustment that is effective on April 1st of each year. This factor is commonly referenced by joint operating agreements and used to adjust the overhead rate.
How is Copas calculated?
COPAS Accounting Procedures provide for an annual adjustment of the fixed rate overhead for drilling and producing wells. Accordingly, COPAS has calculated the percentage change in the simple average of the Oil and Gas Extraction Index and the Professional and Technical Services Index, commencing in April 2004.
What does COPAS mean in oil and gas?
Council of Petroleum Accountants Societies
The Council of Petroleum Accountants Societies (COPAS) is a non-profit professional organization that provides guidance and education on accounting issues in the oil and gas industry.
How is an overhead rate calculated in Copas?
COPAS does not publish or recommend any specific overhead rates or overhead surveys, as the rates are derived through negotiation among the parties to an agreement. For guidelines in the establishment of an appropriate overhead rate, see AG-23, Overhead Negotiation and Calculation, which is available from our Online Store & Publications.
How is the replacement index used in Copas?
See Model Form Interpretation 50 (MFI-50), Overhead Adjustment Index for guidance regarding use of the replacement index in calculating the overhead adjustment, as well as other economic factors, such as the loading and unloading rates. COPAS publishes this rate as a convenience to the industry.
When do I need to adjust my Copas account?
COPAS Accounting Procedures provide for an annual adjustment of the fixed rate overhead for drilling and producing wells. COPAS Accounting Procedures provide for an annual adjustment of the fixed rate overhead for drilling and producing wells.
When does Copas annual payroll and benefits survey take place?
COPAS conducts an annual survey of payroll and benefits to determine the resulting rate, which is effective January 1 of the applicable year. COPAS Accounting Procedures provide for an annual adjustment of the fixed rate overhead for drilling and producing wells.